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Segments (€ million)
S1/24
S1/23
Yes it is
Selver Supermarkets
146,4
147,2
-0,5%
Department Stores
24,0
24,7
-2,9%
Auto Trading
44,8
41,7
7,5%
Security Segment
4. 5
2. 9
58,6%
Realty
1. 7
1. 6
8,2%
Total Sales
221,5
218. 1
1,6%
Selver Supermarkets
1. 0
1. 7
-39,8%
Department Stores
-1,2
-0,8
53,2%
Auto Trading
2. 3
3. 0
-23,2%
Security Segment
-0,1
0,1
–
Realty
2. 2
2. 5
-11,0%
IFRS16
-0,4
-0,5
-25,4%
Total profit before tax
3. 8
5. 9
-35,6%
In the first quarter of 2024, the Group’s unaudited consolidated cash amounted to €221. 5 million. Compared to the first quarter of 2023, expansion of 1. 6%. Net loss for the period under review amounted to €1. 5 million, €2. 1 million less than the profit for the first quarter of 2023, adding a source of cash in taxes of €5. 3 million (€5. 3 million in 2023). The tax amounted to €3. 8 million and also decreased by €2. 1 million compared to last year’s comparable result.
While the retail sales volume index for two years at most and in the first months of the year under review the turnover of the entire retail sector was falling, even with the existing values, the group still managed to increase its volume of sales. The increase in turnover was supported by the success of sales in the group’s automotive segment. The security segment, which grew last year, also contributed to the strong sales growth. The first quarter of the year has historically recorded the lowest profit due to the specificity of the Group’s activities. This year’s result was influenced by a more moderate increase in business volume than last year and by the strong stress on value caused by the economic recession in all segments, especially in the weaker business segments. vital maximum of the Group. The automotive market as a whole, including the Group’s automotive segment, was characterized by increased stock levels and deeper reduction campaigns. In the Supermarkets segment, margins were affected by the higher percentage of discounted products in visitors’ baskets. The continuous increase in the value of has led to an increase in input costs; To address this, we seek even greater power in all business processes. Labor costs increased by 5. 6% in the first quarter of 2024, while the number of workers increased by 1. 7%.
To improve the food shopping experience for our consumers, the Group has been investing in the development of online department stores for a long time. In the first quarter of 2024, Kaubamaja’s new online store, introduced on a new platform, introduced, among other improvements, an AI-based search engine, a complex filtering system, and a huge diversity of inspiration modules on the site. Brands now have more opportunities to strengthen their symbol with branded retail outlets in the online store. In the future, consumers will also have the option to order garments in the online store and try them on in a physical store.
To ensure higher quality and price, Selveri Köök, its personal brand in the supermarket segment, actively pursues the progression of its products with the aim of offering consumers a wide variety of new flavors. At the same time, a lot of attention is paid to reducing the salt, sugar and fat content of the products. At the beginning of the year, several new products were added to the Selveri Köök assortment: poultry puree soups and minced meat soups, as well as in food trays and snacks. Among the desserts, a newcomer to the diversity is the cheerful spring cake Selveri Tibu (Selver Chick), which has always been warmly received by consumers.
To streamline processes, the group started building a central logistics center in Maardu last year. A large-scale structure for the centre was installed in the first quarter. The logistics center is scheduled to be completed in autumn 2024. Work continued on the installation of a total of 49 new public electric car chargers in 17 car parks in Selver. Almost a fraction of them, 25, are ultra-fast chargers, which can recharge the amount of energy needed a hundred kilometers in just a few minutes.
The good fortune of the Group’s activities and investment decisions is evidenced by a record number of unwavering consumers joining the Group’s unwavering Partner Card program. At the end of the period considered, the number of unwavering consumers exceeded 731,000, representing a year-on-year growth expansion of 3. 7 %. The Partner app has been downloaded through more than 220,000 Partner Card consumers. In addition to the Partner Card program, the TKM Group’s subsidiary, TKM Finants AS, offers “pay later” payment answers to Partner Card consumers. To promote principles of culpability, TKM Finants AS joined the Tax and Customs Board’s X-Road service at the end of March for individual tax insights, allowing the finalist to better assess consumers’ creditworthiness and make faulty credit decisions.
Selver Suconsistent with marketsThe consolidated turnover of the business unit in the first quarter of 2024 amounted to €146. 4 million, 0. 5% less than in the same period last year. The average monthly turnover per square metre of domain sales in the first quarter of 2024 amounted to 0. 40 thousand euros, 6. 5% less than last year. In the same stores, product sales per square meter of sales domain amounted to 0. 40 thousand euros, down 4. 3% compared to the benchmark consistent with the year. In the first quarter of 2024, 9. 3 million purchases were made at Selver stores, a decrease of 2. 5% compared to last year.
The consolidated pre-tax profit of the supermarket segment in the first quarter of 2024 amounted to €1. 0 million, €0. 7 million less than last year. Consolidated net profit in the supermarket segment amounted to €0. 6 million, €1. 1 million less than last year. The difference between net profit and profit before income tax source is due to the source of income tax paid on dividends: this year the source of income tax on dividends is €0. 5 million higher than last year.
Selver’s business effects were affected by the general slowdown in the retail environment in Estonia. Retail volumes have experienced a prolonged decline and customer confidence remains low. Selver’s earnings expansion lags slightly behind the segment due to a larger comparison base and a higher share of discounted products. in the basket. Basic comparison knowledge is influenced by the closure of Järve Selver in March 2023 for renovation and the previous sale of the largest store, the closure of WOW Selver ABC in January 2023 and the closure of Punane Selver in May 2023. Fundamental insights exclude data from the Kurna Selver, which opened in August 2023.
The economic effects for the first quarter of 2024 will be primarily impacted by reduced asset sales and a reduction in gross margin resulting from a relief in gross margin. To mitigate the effects of declining purchasing power and customer confidence, we have increased the cost of rebates, and introduced Sustainable Standard Pricing since January. As part of this, we will offer our customers around 650 products at very low prices. During the era analyzed, the prices of many facilities and fabrics increased, allowing the overall point of operating expenses, despite expense reduction efforts, to be comparable to last year. The constant optimization of the painting processes has allowed us to keep the prices of hard work at the point of last year and achieve moderate wage growth.
Selver plans to open two new outlets this year: in the centre of Tallinn, Rocca al Mare, and in Tartu, in Raadi. Both outlets are expected to open in the second half of the year. The focus continues to be on product collection and process optimisation. As a sustainability-oriented company, we try to base all our activities on the conscious use of resources and contribute to sustainable development. To this end, we have developed a sustainability strategy that guides our day-to-day operations. As a company that values openness and transparency, we have also published our commitments and goals on our website. We focus on reducing greenhouse fuel emissions from direct operations, recycling waste, minimizing food waste, reducing packaging use, shortening source chains, and creating quick and convenient solutions. Virtual solutions.
In the Kulinaaria area, the active evolution of products continues with the aim of offering consumers a wide range of new flavours, with particular attention being paid to reducing the salt, sugar and fat content of products.
Department storesThe branch’s turnover in the first three months of 2024 amounted to €24. 0 million, 2. 9% less than in the same period last year. The pre-tax loss of the Kaubamaja branch in the first quarter of 2024 amounts to €1. 2 million. The pre-tax loss increased to €0. 4 million.
The turnover of the Kaubamaja branch per square meter of sales area amounted to 0. 30 thousand euros per month in the first three months, 4. 6% less than in the same period last year. The cooling of the economic situation, which began at the end of the fourth quarter of last year, continued in the first quarter of this year, resulting in a more physically intense winter relief campaign than the previous year, which also played a role. Continue with the results of Kaubamaja. At the same time, it is vital not to forget that the foundation for the first quarter of last year was very solid, with double-digit expansion consistent with percentages. The functionality of the Kaubamaja Tallinn sales company was affected by the current construction of the Vanasadama tram in the center of Tallinn and the closure of the Viru Keskus bus station, which especially reduced pedestrian traffic. On February 29, Kaubamaja introduced an online store on a new platform, where the ease of use for consumers was particularly improved and the AI-based recomposition engine paves the way for higher sales results. On the new platform, the bureaucracy of online stores is a unified entity with physical stores, where the key concepts are pre-purchase, fast delivery and the option to order in the online store and pay in the physical store, or vice versa.
In the first quarter of 2024, the turnover of OÜ TKM Beauty Eesti, which manages the I. L. U. cosmetics stores, was €2. 0 million, 16. 6% more than in the same period of 2023. In the first quarter, €0. 04 million benefited, which, compared to profit in the comparable era of 2023, decreased to €0. 01 million. The baseline was affected by the month-long business disruption of Ülemiste I. L. U. to fix in the past era. Despite the decline in customer confidence, the effects of sales met expectations thanks to the announcement. for the success of your promotional campaigns.
Automotive industryThe turnover of the automotive industry in the first quarter of 2024 amounted to €44. 8 million. Revenue increased 7. 5% year-over-year. Consolidated profit before tax amounted to €2. 3 million in the first quarter, €0. 7 million. less than last year’s result.
In the Baltic car market, economic uncertainty hampered the purchase of new cars, leading to a sharp drop in the Baltics in the first three months. Despite the uncertainty in the market, the Group’s car sold a total of 1,349 new passenger cars in the first three months of the year, 3. 6% more than last year. The market slowdown necessitated pricing campaigns and other place-to-market activities that were better suited to the existing market situation, but which put pressure on sales margins.
An important event in the first quarter was the opening of the Škoda showroom through the group’s Lithuanian car manufacturer, Motus Auto UAB, in Vilnius. Škoda consistently holds one of the top 3 positions in the Baltic automotive market, and the addition of Škoda to the Motus Auto UAB logo portfolio supports the significant expansion prospects of the group’s automotive business in Lithuania. However, Škoda’s initial showroom prices were reduced in the first quarter, which had a negative effect on profits.
In the spring, the Kia range will be expanded with updated styling of the popular SUV, the Kia Sorento. Škoda’s styling diversity will be expanded through the completely revamped mid-range tourer, the Škoda Superb, which has enjoyed wonderful good luck in the past, and the most current SUV, the Škoda Kodiaq.
Security Segment
Revenues from the non-Group security segment in the first quarter of 2024 amounted to €4. 5 million, 58. 6% more than in the same period last year. The segment’s pre-tax profit in the first quarter was €0. 1 million, compared to €0. 2 million last year at the same time.
The effects of the first quarter were mainly affected by prices similar to those of the merger of companies at the end of 2023. The negative economic environment is primarily impacting the security generation sector, where pressure on profit margins has increased, which also affected the effects of the first quarter. In all commercial spaces it increased, with the most significant expansion in the volume of installations in the center, which at most doubled.
Real EstateThe cash of the non-Group real estate segment in the first quarter of 2024 amounted to €1. 7 million, 8. 2% more than in the first quarter of last year. The segment’s pre-tax profit amounted to €2. 2 million in the first quarter. Profit decreased by 11. 0% in the period under review.
The segment’s profit expansion was primarily due to the revitalization of the market for renting advertising areas in the centers, with the addition of new tenants to the rental areas of Tallinna Kaubamaja Gallery, Tartu Kaubamaja Center, and Viimsi Center. Despite the general uncertainty in the economic outlook, the number of visitors to the centers continues to increase. The expansion of the segment’s profits also contributed through the h-car, built as an extension of the Raudkivi tee 1 petrol station, leased to an entity outside the group, located in the vicinity of Peetri Selver, which started operations last summer.
The decline in the segment’s profit is largely explained by the increase in the debt burden, caused by the immediate increase in interest rates of the euro dominance, which began at the end of 2022 and affected the segment’s interest expense with some delay. of the Group’s loan portfolio is concentrated in the real estate segment. Interest expense has nearly doubled from the benchmark a year ago.
In the second part of last year, TKM Kinnisvara AS started expanding a logistics center in Maardu to meet the wishes of the TKM Group. The total domain of the centre is 17,200 m² and the structure will cost around 20 million euros. The logistics centre is financed by the group’s own resources and a bank loan. A solar park will be built on the roof of the logistics centre, the energy production of which will cover a significant part of the building’s electricity consumption. will be completed in autumn 2024. At the end of last year, TKM Kinnisvara AS and Enefit Volt partnered to install a total of 49 new public electric car chargers in 17 car parks in Selver. Almost a fraction of them, or 25, are ultra-fast chargers, which recharge the necessary amount of energy up to a hundred kilometers in just a few minutes.
CONSOLIDATED SUMMARY STATEMENT OF FINANCIAL POSITION
in euros
31. 03. 2024
31. 12. 2023
ASSETS
Current assets
Cash and cash equivalents
39 754
42 064
Trade & Receivable Accounts
24 572
25 568
Inventories
94 880
98 254
Total assets
159 206
165 886
Non-current assets
Long-term accounts receivable and prepayments
245
243
Investments in associates
1 804
1 732
Investment Property
64 971
64 971
Tangible capital goods
431 191
433 306
Intangible assets
24 951
25 370
Total non-current assets
523 162
525 622
TOTAL ASSETS
682 368
691 508
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Loans
38. 842
48 820
Accounts Payable and Payable
138 448
114 573
Full Liability
177 290
163 393
Non-current liabilities
Loans
266 665
258 857
Deferred tax liabilities
5 356
5 356
Provisions for hazards and cargoes.
517
526
Total non-current liabilities
272 538
264 739
TOTAL RESPONSIBILITIES
449 828
428 132
Equity
Share the capital
16 292
16 292
Legal reserve capital
2 603
2 603
Revaluation reserve
115 840
116 521
Retained earnings
97 805
127 960
CAPITAL TOTAL
232 540
263 376
TOTAL LIABILITY AND NET WORTH
682 368
691 508
CONSOLIDATED SUMMARY STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME
in euros
3 months 2024
3 months 2023
Income
221 503
218 083
Other Income
209
332
Cost of Merchandise
-162 090
-158 573
Service Fees
-15 262
-15 895
Personnel costs
-27 294
-25 852
Depreciation, Amortization and Impairment Charges
-10 610
-10 066
Other Expenses
-332
-393
Operating income
6 124
7 636
Financial products
253
1
Financial Expenses
-2 648
-1 806
Share of the net source of income of associates
72
69
Income Tax
3 801
5 900
Income from tax expenses
-5 312
-5 300
NET INCOME FOR THE YEAR
-1 511
600
The Prolonged Result:
Items to be reclassified as profit or loss at a later date
Another comprehensive source of income for the year
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-1 511
600
Basic and diluted profit consistent with percentage (euros)
-0,04
0,01
Raúl PuuseppPresident of the Board of DirectorsPhone 372 731 5000
Attached
Börs_TKMGrupp_1Q2024_fra